CHAPTER-FOUR
4.1 Summary and Conclusion
Depending upon the KBC
data and above analysis, in brief we can say that the KBC is a nice and popular
firm and will provide different modern types clothes to the consumer at
reasonable price.
Keeping above mentioned
facts into consideration, KBC has situated in Khairahani VDC, Ward No.4 at
Parsa Bazar. The firm area is situated in the eastern part of Chitwan district,
Narayani zone in the central development region of Nepal. KBC was established
on 1st Ashoj 2058 B.S.. It is one the retailer of clothes in eastern
chitwan. There are so many retailers relating to clothes in parsa Bazar. Among
them KBC Pvt. Ltd. is one-step ahead. In the present time its transaction is
about 1 cores in a fiscal year.
When we give focus in
economic status of this orgn, the Net profit is Rs 250,490, Rs.
231,540 and Rs. 340,642 respectively in fiscal year 2067/068, 068/069 and 069/70.
It shows that profit is high there when there is higher sales and profit is
less there when there is less sales. In trading A/C also same condition. It
means there is higher gross profit in fiscal year 069/70 i.e. Rs.1,052,496
where the sales is Rs.4,800,953. There is less gross profit in fiscal year 068/069
i.e. Rs. 820,321 where the sales is Rs.3,740,599. It is less amount of sales
than other two fiscal years.
The KBC appropriates it
net profit to different headings. At first it pays tax to the government as per
rules under income Tax act 2058 and separates 25% amount of remaining profit
for General reserve. After Separating general reserve it distributes remaining
profit for employee bonus 10%, capital reserve 50%, reserve for future loss 20%
and reserve for doubtful debt 20%.
In the fiscal year 2067/068
the G.P. ratio is 18.07% and it increases by 3.86% in the fiscal year 068/069
and again it decreases by 0.01% in the fiscal year 069/70 but net profit ratio
increases by 1.04% in the fiscal year 068/069 and it increases by 0.91% in the
fiscal year 069/70. The fiscal year 069/70 is good for KBC because in this year
its Net profit, gross profit and sales all are higher than previous two years.
Any way this orgn
is running nicely. It is due to well management made by the promoter better
purchasing policy and selling different modern clothes at reasonable price to
costumers. At last, I am very grateful for the progress of this organization
and it is hoped from this report that in coming days it will run better.
4.2 Recommendation
After the through study of
profit & loss analysis of KBC, the performance of this firm is
satisfactory. Over stocking always badly affects to the profit. So, the KBC
should try to sell the all purchasing clothes and decrease its closing stock.
However, certain exception relation to its effectiveness was observed that the
salary and other facilities given by this orgn to its employees is
not satisfactory. So, it is better to increase the salary of its staffs.
BIBLOGRAPHY
Ø Company Act 2053
Ø R.M Dangol (2061- A Basic
Course in Accountancy)
Ø M. R. Koirala (2062- An
Introduction to Accountancy and Auditing)
Ø D. L. Pandey (2064-
Principles of Accounting)
ACRONYMS
KBC Ü Kanchanjanga Business
Circle
Pvt. Ü Private
Ltd. Ü Limited
NCC Ü New
Capital College
A/C Ü Account
Dr. Ü Debit
Cr. Ü Credit
T.U Ü Tribhuvan University
G.P Ü Gross Profit
exp. Ü Expenditure
depn Ü Depreciation
& Ü and
orgn Ü organization
G.R. Ü General
Reserve
APPENDIX
1.
Why you established the KBC?
2.
When the KBC registered?
3.
For what purpose do you run the firm?
4.
How many founders are there?
5.
How many VDC area do you take as transaction area?
6.
How the incomes are used ?
7.
What is its motto?
